On July 10, 2024, Honeywell agreed to acquire Air Products' liquefied natural gas (LNG) process technology and equipment business for $1.81 billion USD (approximately CAD 2.42 billion at the time of the transaction) in an all-cash deal, representing approximately 13x estimated 2024 EBITDA. The acquisition aimed to expand Honeywell's offerings in the energy transition sector by integrating Air Products' advanced LNG technology, including the highly efficient coil-wound heat exchangers (CWHE). This deal was part of Honeywell's broader strategy to deliver comprehensive energy solutions, combining natural gas pre-treatment and liquefaction under the Honeywell Forge and Experion platforms.

Both Honeywell and Air Products have significant operations in Canada. Honeywell Canada operates across multiple provinces, providing services and solutions in industries such as aerospace, building technologies, and performance materials. Air Products Canada supplies industrial gases and related equipment to sectors including energy, chemicals, and manufacturing.

Air Products' decision to divest its LNG business aligned with its strategic focus on growing its core industrial gas operations and advancing clean hydrogen technology. The LNG market, which saw significant growth over the past two decades, was expected to continue expanding, driven by increasing demand in key sectors.

The transaction, expected to close by the end of the year, is anticipated to be accretive to Honeywell's adjusted earnings per share within the first full year.

Skadden, Arps, Slate, Meagher & Flom LLP advised Air Products, while Kirkland & Ellis LLP represented Honeywell.